By
Bena Ilyas
April 23rd, 2024
Tesla (TSLA) stock is in the green while a number of fundamental factors might be affecting its rise, including the expansion of the industry in Shanghai.
Tesla Inc (TSLA) stock raised 13.60%, $77.95, on Monday to clinch slightly above $650 per share. This is in contrast to the other traditional stock markets, which are feeling the adverse effect of the coronavirus. Now being under the influence of several factors, Tesla stock is 5.88% in the pre-market.
The Dow Jones Industrial Average has lost 1.39%, while the S&P 500 remains in a consolidation mode.
This comes at a time when the novel coronavirus is fast approaching the 2 million mark globally. At the time of reporting, according to the World Health Organization, the total confirmed cases in the United States stand at 587,337, while globally the number stands at 1,920,918.
The number has been rising exponentially in a very alarming manner, adding onto the panic level already on the ground.
Factors for Tesla (TSLA) Stock Rise on Monday
Tesla has been working round the clock to navigate its way out of the coronavirus pandemic, and it seems Elon Musk’s efforts are bearing fruits. Despite accusations that he has been throwing a lot of promises that the company has not been delivering in time.
The company stands at a very good point to win the hearts of many investors who are looking for a place to put their money at these confusing times. It has been observed that most people are going for electric cars to avoid more air pollution.
European countries have also been pushing to put up more strict measures to control the rate of motor emission. And it seems Tesla has already repositioned itself in a position that will put itself ahead of the rest.
Other motor companies are still setting up if not designing their way out to implementing the electric vehicle industry. According to some analysts, with the level of uncertainties caused by the ongoing coronavirus, some motor companies might not see the end of the crisis.
According to Electrek, the stock might have jumped because of a number of reasons. First, the stock might have jumped because Elon Musk has shown confidence in Tesla’s Robotaxi plan.
Another reason might be due to the fact that Tesla has launched its discontinued Model 3 long-range right-wheel drive which is made in China. Besides, according to a study conducted, it showed that the pandemic lockdowns are encouraging more consumers to buy electric cars than before.
The other major fundamental that might have driven the shares up on Monday might be due to the fact that the company’s sales in China hit a record high during the ongoing coronavirus crisis. The company recorded a 25% increase in its China sales.